Former California Agent Arraigned for Allegedly Stealing Insurance Payments

May 10, 2021

Formerly licensed insurance agent Danny Raymond Armenta, 48, of Clovis, Calif. was arraigned on Monday in Fresno Superior Court on multiple felony counts of embezzlement, grand theft and diversion of fiduciary funds after allegedly using his position as an insurance agent to steal consumers’ premium payments and use them for personal expenses.

After receiving a complaint from Armenta’s employer, the California Department of Insurance launched an investigation which reportedly revealed that while working as an insurance agent, Armenta collected funds from consumers to pay insurance premiums. Investigators allege Armenta deposited the payments into a fiduciary account, transferred the funds into a business operating account and eventually moved $17,797 into his personal banking account.

He allegedly used the stolen funds to buy college sports tickets, pay bills, and cover other personal expenses.

When Armenta’s employer attempted to withdraw the consumers’ fiduciary funds to cover the consumers’ insurance premiums, they received notices of insufficient funds. Despite Armenta’s actions, the insurance company covered the premium payments.

Although Armenta’s license expired on Sept. 30, 2020, the CDI revoked his license on March 1, 2021, and prohibited him from further participation in the insurance industry. Armenta is scheduled to return to court on June 23. The case is being prosecuted by the Fresno County District Attorney’s Office.

Topics California Agencies Fraud

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